Kolkata: The state-run National Insurance Company is apprehensive of a 1-2 per cent drop in its motor insurance business from the ongoing month due to the economic slowdown, a top official of the company said Saturday.
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"The rate of growth was higher till October. But maybe, the business will go down 1-2 per cent when we calculate the figures post-October," the company's chairman-cum-managing director V. Ramasaamy told newspersons on the sidelines of a programme here Saturday.
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"But the slowdown will affect the new vehicle business as sale of automobiles have gone down. So, we are concentrating on renewals," he said.
Motor insurance business comprises 51 per cent of the company's overall portfolio.
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National Insurance, which earned a premium of Rs 4024 crore in 2007-08, has targeted an 11 per cent growth in the current fiscal to boost the earnings to Rs 4500 crore.
In health insurance, which formed 17 per cent of the company's business in 2007-08, Ramasaamy said he hoped the figure to be 20 per cent in 2008-09.
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"Last year, we received a total health premium of Rs 680 crore. This year, we hope to raise it to Rs 900 crore, which will be 20 per cent of our business," he said.
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Asked about the potential in the country's health insurance sector, he said: "As per an estimate after March, 2008, the country's total business potential is Rs 50000 crore. Of that, all the insurance firms combined have tapped only Rs 5100 crore".
From bank assurance, the company is expected to earn Rs 3000 crore by the end of this fiscal, as against Rs 2400 crore last year.
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"Now, we have a tie-up with 26 banks in the country. We hope to add a couple of banks this fiscal," Ramasaamy added.